The book I recently reviewed focuses on investing in index funds and letting the portfolio sit for decades — “buy and hold.” It’s a strategy that has been popular since the market took a downward spin when the tech bubble gave out. Not everyone agrees that it’s the best strategy.
Mark Cuban, outspoken owner of the Dallas Mavericks and founder of Broadcast.com (which was later sold to Yahoo) believes the stock market is for suckers. According to Cuban, most of those who invest in the stock market aren’t buying real ownership, they are mostly buying a tiny portion of shares discarded by those closer to the company. The only real investment is buying a material percentage of a company, and if you can’t afford to do that, you’re better off in less risky investments like bonds and CDs.
Updated February 7, 2012 and originally published January 4, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.